This event and EventID 1055 from source Userenv appeared on a Dell PowerEdge 2850 running VMware windows beta. The NIC is an INTEL PRO 1000 MT. The virtual machines had trouble communicating with the domain controllers. For example, you would join the domain successfully but the computers would not should up in the COMPUTERS section of the Active Directory.
It turns out that the solution to the problem is to not use the drivers from the DELL site (dated 2004) but to get them from Intelís site (dated 2006). This solved my 2-week-old problem.

When you upgrade a LAN Manager backup domain controller (BDC) to a Windows NT BDC, the NetLogon service terminates and this event is written to the system log. This problem occurs if the computer name is the same as an existing user name. See ME130742 for a solution to this problem.

Upon starting, Netlogon attempts to find a domain controller (DC) for the domain in which its machine account exists. If a machine account cannot be found, this event will be logged. See ME266729 for more information about this issue.

This problem appears to be random and may occur on several BDCs. If you remove the BDC computer account and synchronize the BDC with the PDC, the problem is solved until the NetLogon service is restarted on the PDC. See ME154398 for more information about this issue.

You may also see this event when you try to log on to a Windows NT 4.0 domain from a Windows XP-based computer. See ME810497 for detailed information about this problem.